Deutsche Bank: Australian households resilient despite high debt
Australian households are weathering rate hikes better than expected, with debt-to-asset ratio at lowest since 1997, Deutsche Bank says.
Australian households are weathering rate hikes better than expected, with debt-to-asset ratio at lowest since 1997, Deutsche Bank says.
Treasurer Jim Chalmers warned that rising global bond yields will increase Australia's budget costs as cheap debt matures.
Australian consumer sentiment fell sharply after the RBA's latest rate hike, with Westpac predicting another increase in November.
Australia's services PMI eased to 51.9 in September, with employment falling and price pressures accelerating, posing a dilemma for the RBA.
The RBA review finds a 20% price fall keeps most mortgages in equity, with its main warnings set on external risks.
Australia's headline CPI rose to 4% in August, meeting economists' expectations and accelerating from the prior 3.5%.
Australia's August CPI is due one day after the RBA's 25bp rate rise, with headline inflation forecast at 4.0% and trimmed mean steady at 3.6%.
Chinese PMIs and Australian CPI lead Asia's economic calendar on September 30.
AUDUSD fell to a new low after the RBA's expected rate hike, with sellers defending the 200-day moving average.
The RBA lifted its cash rate to 4.60% as expected, but the Australian dollar fell and the U.S. dollar advanced against most major currencies.
The RBA raised its cash rate to 4.60%, a 15-year high, and signaled further hikes if inflation does not ease.
After the RBA raised the cash rate by 25 bps to 4.60%, AUD/USD fell below 0.7000 and risks a deeper decline if support levels fail.
RBA's Bullock downplays August CPI as a policy trigger, citing monetary policy lag and stressing the report's limited forward guidance.
RBA Governor Bullock said the bank will raise rates again if needed, but today's hike may be the last for now if inflation risks ease.
Australian household spending was flat in August, short of the 0.4% forecast, as the RBA prepared to raise the cash rate to 4.60%.